ENERGY SECTOR AND BUSINESS DEVELOPMENT IN NIGERIA. A STUDY OF SOUTH EASTERN NIGERIA: 1990 – 2016

SOURCE:

Faculty: Management Sciences
Department: Business Administration

CONTRIBUTORS:

Nwabisi, P. N.
Akpan, P. L.

ABSTRACT:

This study focused on Energy Sector and Business Development in Nigeria. A Study of South Eastern Nigeria. Various governments in Nigeria, starting from military to civilian administrations have embarked on energy restructure programmes as a means of addressing energy problems in the Country. Thus the objectives are to determine the extent to which energy supply affects the manufacturing sub-sector of the zone, to ascertain the influence of energy generation relative to installed capacity on business growth, to determine the influence of gas supply on industrial production and to examine the extent to which the use of obsolete electricity generation equipment affect business development of south eastern zone with particular reference to SMEs. Ordinary Least Square (OLS) technique and questionnaire were used in the research work. Data were sourced from various publications of Central Bank of Nigeria, National Bureau of Statistics, National MSME Survey report 2013 of SMEDAN, Federal Ministry of Power, Nigerian Electricity regulatory commission (NERC), Power Holding Company of Nigeria (PHCN), and some online resources. The analysis revealed that energy sector has significant relationship with the business indicators such as manufacturing sub-sector output, energy generation relative to installed capacity, industrial production, labour, technology, import and export variables among others, used in the research work. The restructuring of the energy sector and its influence on business development have a positive relationship with the business growth, the installed capacity of energy on manufacturing and industrial productive sector of the economy. The increase in supply of energy sector enhances the business operations and business development of the South Eastern Zone. The research revealed that strengthening of the energy sub-sector and its constant gas supply in order to ensure steady and reliable power supply in the industrial sub-sector that would facilitate industrialization, enhances the business and economic activities of SMEs. The research recommends that the Federal Government should provide adequate energy infrastructure for a reliable and efficient supply by granting more licences to qualified private investors, providing energy efficiency policies in the area of power. In addition to putting in place strict regulation on importation of foreign goods so that local businesses will thrive.